Amid rising tensions following a deadly assault in Indian Illegally Occupied Jammu and Kashmir (IIOJK), India has urged the International Monetary Fund (IMF) to reassess its financial assistance to Pakistan, according to an Indian government source cited by Reuters.
The call comes as both nations take a series of retaliatory steps after the recent attack, which left 26 civilians dead. Fears are mounting that the standoff could escalate into a broader military confrontation between the two nuclear-armed neighbors.
While Islamabad has denied any involvement and requested an impartial international probe, India has suspended a key water-sharing treaty, and both countries have shut down their airspace for each other’s airlines.
Pakistan secured a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.
The programme is critical to the $350 billion economy and Pakistan said it has stabilised under the bailout that helped it stave off a default threat.
India raised concerns with the IMF on its loans to Pakistan, asking for a review, a government source told Reuters without elaborating.
The IMF and India’s finance ministry did not immediately respond to a request for comment.
The adviser to Pakistan’s finance minister said the IMF programme is “well on track”.
“The latest review has been done well and we are completely on track,” adviser Khurram Schehzad, told Reuters, adding that Pakistan had very productive spring meetings with financial institutions in Washington.
“We did about 70 meetings, interest has been very high for investing and supporting Pakistan as the economy turns around,” Schehzad said.
The soaring tensions between the two countries has drawn global attention and calls for cooling tempers.
Source: The News
